What Is Limit of Liability?
The maximum amount an insurer will pay for a covered loss under a policy, which may apply to the entire policy or to individual coverages. Claims exceeding the limit are the policyholder's responsibility.
Limit of Liability across 2 exams
Limit of Liability appears on the following exams. Each defines it in the context candidates are tested on:
- Public Adjuster
- The maximum amount an insurer will pay for a covered loss under a policy, which may apply to the entire policy or to individual coverages. Claims exceeding the limit are the policyholder's responsibility.
- Health-Only Insurance
- The maximum dollar amount an insurance policy will pay for covered losses. Once this limit is reached, the insurer has no further obligation to pay benefits under that policy.